Bharti Global to acquire 24.5% stake in British Telecom for $ 4 b

Saturday, 17 August 2024 00:56 - - {{hitsCtrl.values.hits}}

Sunil Mittal’s global ambitions got a further boost with Bharti Global, the international investment arm of Bharti Enterprises set to acquire 24.5% of one of the oldest telecom operators in Europe, British Telecom (BT) Group PLC, from Altice UK S.à r.l (Altice UK).

Though the companies did not divulge the size of the deal, market watchers say that at BT’s valuation of roughly $ 15 billion, the deal could be in the ballpark of around $ 4 billion. The shares will be purchased through Bharti Televentures UK, which is wholly-owned by Bharti Global, the company said. Mittal has already invested in Africa, Sri Lanka and Bangladesh through Airtel.

He is also looking at a global satellite services business through OneWeb, another British company in which Mittal has taken significant stake.

Under the new deal, Bharti Televentures UK Ltd has entered into a binding agreement with Altice UK to acquire 9.99% stake of BT Group’s issued capital imminently with the balance 14.51% of BT’s share capital to be acquired following receipt of applicable regulatory clearances, it said.

Bharti hopes that this investment will further help create new synergies in the telecom sector between both countries in the areas of AI and 5G R&D and core engineering amongst others, offering great potential to collaborate on industry best practices and emerging technologies, it said.

“Bharti and BT have an enduring relationship going back more than two decades wherein BT owned 21% stake along with two board seats in Bharti Airtel Limited from 1997-2001. Today marks a significant milestone in Bharti Group’s history as we invest in BT – an iconic British company,” Bharti Enterprises Chairman Sunil Bharti Mittal said.

Bharti’s own record of owning and operating telecom and broadband networks around the world is underpinned by placing customers, digital innovation and operational efficiency at the heart of its business, Mittal said adding that the stake in BT Group marks a “good, long-term investment an attractive buy” as the British company has strong portfolio of home broadband, fibre, mobile and enterprise offerings.

“We review global investment opportunities in the world of technology from digital infrastructure to software. We believe that BT is poised for leadership in the telecom arena, especially home broadband services,” Bharti Global Managing Director and Founder of Unbound, the long-term global tech investment fund Shravin Bharti Mittal said.

According to CEO Timotheus Höttges of Deutche Telecom which holds 12% stake in BT, the deal is a positive step for BT. “We have a long and good working relationship with Bharti. So we are looking forward to work together with Bharti in the Board of Directors for the sake of BT shareholders and customers,” he said.